Greece would have defaulted on its debt by Moody’s

Despite the reduction of the Greek debt, Moody’s lowered Greece’s sovereign rating to C from Ca 8 days ago, it is reported in a press release from the rating agency.

“One hundred billion euros of debt have been erased but the debt swap is an exchange and therefore forced a default on debt,” it is said in a statement Saturday.

Moody’s has also not specified the time to reassess the rating of Greece but promised to control the growth of the country and respect by the latter measures are a condition of receiving aid.

Under threat of a default on March 20, the Greek government has obtained the agreement Thursday night all of its private creditors, holders of 85.8% bonds of Greek law, to clear 100 billion euros of its debt. The deal, confirmed that the country avoid disaster on Friday morning.